The Conservative Party

[Nethermoor]

Good. Not often I agree with this lot, but current inheritance tax laws are terrible.

 

[Vic]

Good. Not often I agree with this lot, but current inheritance tax laws are terrible.

Yeah, they leave the rich with way too much inherited wealth.

 

[BeerIsTheBest]

It’s all absolute bollocks and expect nothing else as the GE looms.
4% of people who die pay IT. it added £7b to gvmt coffers in 22/23.
Changes to tax on Capital Gains and changes to taxation rules on pension transfer to dependants on death, and to the pension Lifetime Allowance will compensate.

The proposed pension and capital gains taxes have been slipped in without any fanfare and are more unfair to more people who are not in the richest classes.

Work it out!

 

[Nethermoor]

It’s all absolute bollocks and expect nothing else as the GE looms.
4% of people who die pay IT. it added £7b to gvmt coffers in 22/23.
Changes to tax on Capital Gains and changes to taxation rules on pension transfer to dependants on death, and to the pension Lifetime Allowance will compensate.

The proposed pension and capital gains taxes have been slipped in without any fanfare and are more unfair to more people who are not in the richest classes.

Work it out!

You pay 40% on anything inherited over £325k. So how you getting 4%?

The majority of folk have a house worth more than that....

I'm not against inheritance tax, but it should be over a higher amount.

 

[west didsblue]

You pay 40% on anything inherited over £325k. So how you getting 4%?

The majority of folk have a house worth more than that....

I'm not against inheritance tax, but it should be over a higher amount.

There’s an additional nil rate band for primary residence of £175,000 and if it’s a couple where the second person has just died the first persons allowance is added, so in most cases it’s actually £825,000 before any IHT is paid. And that was in 2021 and the nil rate band is supposed to be linked to CPI so it should be more than that.

 

[BeerIsTheBest]

You pay 40% on anything inherited over £325k. So how you getting 4%?

The majority of folk have a house worth more than that....

I'm not against inheritance tax, but it should be over a higher amount.

Morning mate

From Gov.UK stats
‘The number of people who paid inheritance tax over the past year has soared by 24%, driven by rising property prices and a frozen tax thresholds. The latest government data shows that 41,000 people were liable to inheritance tax in 2022/23, up from 33,000 the previous year and the highest level in 20 years.’

If the gvmt were being fair and reasonable they would simply raise the £ threshold before the tax became effective. Why is this not a fair solution - probably because doing away with the tax completely is a great headline. Which class of person is this really helping?

Punishing everyone who has steadily built a pension and then dies before age 75 and potentially changing the rules on Capital Gains such that any small investor who has saved gets clattered if their investments do well is patently unfair in my book.

 

[BeerIsTheBest]

Morning mate

From Gov.UK stats
‘The number of people who paid inheritance tax over the past year has soared by 24%, driven by rising property prices and a frozen tax thresholds. The latest government data shows that 41,000 people were liable to inheritance tax in 2022/23, up from 33,000 the previous year and the highest level in 20 years.’

If the gvmt were being fair and reasonable they would simply raise the £ threshold before the tax became effective. Why is this not a fair solution - probably because doing away with the tax completely is a great headline. Which class of person is this really helping?

Punishing everyone who has steadily built a pension and then dies before age 75 and potentially changing the rules on Capital Gains such that any small investor who has saved gets clattered if their investments do well is patently unfair in my book.

Sorry should have added the % to answer your Q
tax?

The key points from this year's publication are: In the tax year 2020 to 2021, 3.73% of UK deaths resulted in an Inheritance Tax ( IHT ) charge, decreasing by 0.03 percentage points since the tax year 2019 to 2020.26 Jul 2023

 

[bluethrunthru]

"you are talking historical figures" says the Tory.............. by its very nature IHT is historical - you can't hit people with it when they reach the age of 30 can you ? - another winner from Rishi as he flails about ahead of his conference

 

[BobKowalski]

Good. Not often I agree with this lot, but current inheritance tax laws are terrible.

Raising the threshold or even tweaking the rates is fine, but the tax does incentivise those with lots of money to seek out ways to minimise IT - for example investing in the Alternative Investments Market which helps fund small to medium sized UK companies and generate growth. Shares held in AIM listed companies are exempt from IT.

Immense wealth stagnating in the hands of a few and doing nothing is not healthy. Freeing up this money or incentivising people to invest some of their wealth in the economy is sensible.

 

[Nethermoor]

There’s an additional nil rate band for primary residence of £175,000 and if it’s a couple where the second person has just died the first persons allowance is added, so in most cases it’s actually £825,000 before any IHT is paid. And that was in 2021 and the nil rate band is supposed to be linked to CPI so it should be more than that.

Yeh we're going through this with my Grandads estate.

He was a head Gardener in the NHS for 50 years and has a nice big house passed to my dad and auntie. They thought they might have to pay 40% on nearly 325k which would be a hell of a lot of money and unfair on the family who have worked hard for themselves.
Luckily as my Grandma died a few years back the threshold is increased as you mention.

I think raising the threshold in general is the best idea. 325k is a tiny amount these days. Should be a million or incremented. Say 5% over 500k until 1million then it's 40% or something.